Historical Argentine Inflation

History of inflation in Argentina

Argentina is a country known for its turbulent economic history, especially when it comes to inflation. In this blog, we will explore the history of inflation in Argentina, from the first records to the present day.

Inflation in Argentina: a brief introduction

Argentina has a long history of economic instability, and inflation has been one of the main challenges faced by the country over the years. Inflation is the continuous and widespread increase in the prices of goods and services in an economy.

First records of inflation in Argentina

The first record of inflation in Argentina dates back to the nineteenth century during the War of Independence. During this period, inflation was driven by the excessive emission of paper-moo to finance the war.

In the 1940s, Argentina experienced a period of moderate inflation, but the situation worsened in the following decades. During the 70’s and 80’s, the country faced hyperinflation, with annual inflation rates reaching over 1,000%.

Hyperinflation in the 1980s

Hyperinflation in Argentina reached its peak in the 1980s. During this period, the country faced a serious economic crisis, with monthly inflation rates exceeding 200%. The economy collapsed, leading to protests and political instability.

  1. Austral Plan
  2. To combat hyperinflation, the Argentine government implemented the Austral Plan in 1985. This plan included the replacement of the national currency with Austral, with the aim of stabilizing prices and controlling inflation. At first, the plan was successful, but soon inflation rose again.

  3. Cross Plan
  4. In 1986, the Argentine government implemented the cross plan, inspired by the Brazilian plan of the same name. The goal was to freeze prices and control inflation. However, the plan failed to stabilize the economy and inflation continued to increase.

  5. Austral Plan II
  6. In 1987, the Argentine government launched the Austral Plan II, a new attempt to control inflation. However, the plan also failed and inflation continued to rise.

Recent inflation in Argentina

In recent decades, Argentina has faced continuous challenges in relation to inflation. The annual inflation rate has been varied, reaching peaks of more than 50% in a few years. Economic and political instability has been an important factor in the persistence of inflation in the country.

References

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